Two landlords, who are hoping to obtain a judicial review of the Chancellor’s restrictions on buy-to-let mortgage tax relief, have extended their fund-raising deadline until the end of June.
Parents putting their name on a mortgage to help their children buy a house are set to be stung by the 3 per cent Stamp Duty Land Tax (‘stamp duty’) penalty aimed largely at buy-to-let landlords.
In his July 2015 budget, the Chancellor put buy-to-let investors in his crosshairs by scrapping a tax relief that allowed them to offset the interest on their monthly mortgage repayments, against their income tax bills, on the rent they receive. Then, in his November 2015 Spending Review, he went one step further by increasing stamp duty on purchases of additional residential properties – adding 3% on top of the standard rates.
The number of tenants owing more than two months’ rental payments due now totals 74,000, according to data compiled by market professionals.